A manufacturing business faces that same challenges as businesses that procure goods to resell, with the additional challenge of accounting for raw goods on their way to finished inventory. While sales and marketing are a component of every enterprise, without producing the product first, a manufacturing business has nothing to sell.
Due to the additional complications involved in producing products for sale, it’s important that these manufacturing costs are tracked carefully to ensure that the business produces goods for sale at the right price. Manufacturing businesses fall into trouble when they do not properly cost the most important part of their production process or spend time keeping track of things that don’t really impact their cost of goods. As accountants completely familiar with the manufacturing process, we will strike the right balance for your business.
While most accountants and controllers can create a costing spreadsheet, cost accounting is a specialized field within our industry. Make sure you are assigned an accountant with this focus.